The Impact of Technological Change on Business

Technological change is the most critical issue in business. The internet, mobile phones, and computers have changed the way we work and live our lives. This blog post will discuss the impact of technological change on business for you to understand more about it.

Two-way information flows

In the industrial economy, companies controlled all the information about their products. The producers decided what to make and how much to charge for it. Customers didn’t have a choice as they were not aware of alternatives. Now, with technological change, every customer is a producer through peer-to-peer sharing of information over social media. Customers now have easy access to substitutes from around the world, which means that companies now face competition from everywhere in the world rather than locally as before. 

With two-way information flows, customers can compare themselves against other customers, which has led to a shift towards “transparency” – both around quality and price, leading to greater competition between competitors.

Rise of mass collaboration

Open-source software and collaborative online communities like Wikipedia have demonstrated the power of mass collaboration. The internet has lowered the barriers to entry and allowed small companies and individuals to compete on a more equal footing with big companies. Collaboration means that companies need workers who are more skilled, flexible, and educated than ever before.

The rapid pace of technological change

The rapid pace of technological change makes it difficult for employees to keep up with the latest developments in their field. This affects knowledge workers’ productivity as they need time to learn new skills quickly, reducing their wages. 

More tangibly, firms would replace older machines/equipment with newer ones over time, leading to a gradual increase in capital intensity resulting in a fall in labor’s share due to deflationary pressure from technology replacing labor.

Falling costs of communication and coordination

The internet has made it easier for businesses to communicate and coordinate activities at a distance with partners, suppliers, and outsourced workers from around the world. The short-run cost of searching for information across the globe has fallen massively, letting buyers do more comparison shopping. We see increased geographical specialization with cheaper communication due to a rise in comparative advantage, especially among countries/regions with different resource endowments or factor endowments. 

However, it has resulted in various social and political pressures such as outsourcing, offshoring resulting in deflationary pressure on local wages which can lead to dissatisfaction by natives who feel threatened by immigrants. This can end up further leading to negative effects such as an increase in xenophobic nationalism, etc.            

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7 Countries That Don’t Accept Cryptocurrency

Being a cryptocurrency enthusiast can be hard. Some people don’t know what it is, and there are places that flat out won’t accept it as payment for goods or services. It might seem like an uphill battle to convince some of these countries to start accepting crypto payments, but the following list should give you hope. These seven countries have either banned cryptocurrencies outright or refuse them as a form of legal tender.

1) Bolivia

Bolivian President Evo Morales has been vocal about his opposition to digital currencies, saying they’re a “ploy and financial manipulation.” The Bolivians are particularly worried that cryptocurrencies might be used as tools for laundering money or evading taxes. They’ve even gone so far as to ban Bitcoin mining in the country.

2) Ecuador

Ecuador is another country that has seen the downside of Bitcoin and other cryptocurrencies. Its central bank banned them in July 2014 but reversed its decision a few months later after realizing how difficult this would be to enforce. Nowadays, there are some places you can spend digital currencies within Ecuador, such as BitBolete for shopping and BitPagos for hotels.

3) Iceland

Iceland has some of the most expensive electricity globally, which is why so many cryptocurrency miners have set up shop there. However, this obsession with mining has caused one Bitcoin to cost around $20,000 more than it does elsewhere. These inflated prices prompted Icelandic officials to consider a ban on virtual currencies as early as April 2018.

4) Vietnam

Vietnamese Prime Minister Nguyen Xuan Phuc took a hard line on cryptocurrencies in June 2018, saying they’re illegal. While it’s unclear whether he meant the ban is temporary or permanent, his statement definitely didn’t help promote the country’s widespread adoption of digital currencies.

5) Kyrgyzstan

If you’re looking to make investments in Kyrgyzstan, avoid putting any money into cryptocurrencies. Cryptocurrency exchanges are banned within the country as of July 2018. The government justified its decision by saying that digital currencies lack a legal entity and pose risks for investors and citizens alike.

6) Colombia

There are still some businesses in Colombia that accept cryptocurrency payments. However, the central bank of Columbia has repeatedly warned its citizens about their dangers and risks—and even went so far as to ban Bitcoin mining within the country back in early 2018. It’s unclear whether this will remain a permanent ban or if there is any hope for Colombians to make crypto investments.

7) Bangladesh

In early 2018, Bangladeshi officials declared that trading or holding cryptocurrencies were considered illegal within the country. The decision came after a man in Bangladesh tried to use cryptocurrency as payment for ransom money. While there’s no indication that this ban will be lifted anytime soon, some speculate it might change if other countries start accepting crypto payments.

4 Tips for Strengthening Your NFT Assets

NFTs, or Non-Fungible Tokens, are a new digital asset that can be used in various ways. They are often traded on the Ethereum blockchain, and they have many uses. NFT assets are unique because each one is different from all others like it. This means that you cannot simply copy someone else’s token to make your own. We will discuss four tips to strengthen your NFT assets and increase their value.

1) Stake Your Tokens

One way to increase the value of your NFT assets is simply by staking them. Staking means locking up several tokens for a period of time to receive some reward from whatever dApp or platform issued those tokens. This method works best with games, such as Cryptokitties, that have a built-in staking system.

The more tokens you stake and the longer they are locked up for, the higher your rewards will be when it is time to release them from their lockup period. If you do not need many NFTs to play, try this strategy with smaller amounts. The current reward system for Cryptokitties is fairly simple and can be found on their website.

2) Take Advantage of Airdrops

Airdrops are a common way that blockchain projects spread their name or promote new features. They give users tokens for free after completing some task, such as staking certain amounts on the network. If you have been holding NFTs from an ICO, you should definitely consider taking part in an airdrop. There are two benefits of taking part in this type of NFT promotion plan; you receive new tokens from the project, and your current tokens may appreciate because more people will learn about them as they take advantage of free coins.

3) Be Patient

This is especially true in the case of initial coin offerings (ICOs). The market for NFTs and crypto-assets can be very volatile, which means that you may not see your investment grow right away. If you hold several hundred or even thousands of tokens, it could take months before they appreciate enough to make it worth selling. Many projects do not even release tokens for months or years after the ICO. This means that you can wait and accrue value over time without having to worry about a sudden price drop.

4) Watch the Markets

Another way to increase your NFT investment success is by watching market prices. Many exchanges, such as Coinbase or Binance, offer mobile applications that allow you easily check current token values while on the go. This can help keep you up-to-date with the latest changes and trends in the industry so that you can take advantage of them. If you are looking to sell some NFTs, watching market prices is a great way to find the best time and maximize your value.

Swiss Market Finished On A High Note

This past weeks market gain in the Swiss Stock Market is seeing a modest increase after last weeks solid performance. The United States increased employment rate has helped the market in Switzerland drastically. Nasdaq explained, “The overall attitude among investors remained one of caution Monday, due to concerns over Greece. Eurozone finance ministers are meeting in Brussels today to take note of the Greek government’s progress in the implementation of structural reforms in exchange for bailout funds. It was reported just before the close that the Greek government has “executed” the order to make a scheduled loan repayment of 750 million euro to the International Monetary Fund tomorrow.” 

This past week, the Swiss Market Index rose .26% and finished at 9,117.33. This is some the highest values in this fiscal year. Shares across the whole market have improved drastically.

Nasdaq explained, “Shares of UBS began trading ex-dividend on Monday and ended the session higher by 0.1 percent. Credit Suisse climbed by 1.2 percent and Julius Baer added 0.6 percent.”

This post was originally published on Etienne Kiss-Borlase’s Finance blog. For more info about Etienne, please visit his homepage.

Politics Hurt Business In Switzerland

Over the past decade or so, the business and economic industry has been taking a hit due to the ruptured economy in Switzerland. Foreign firms are are drawing away from setting up business in the country, it has dropped 8% to only 274 in 2014 and an astonishing down 21% since 2013. Even though Switzerland has one of the most competitive economies in the world, the politically instability of the government has been drawing organizations away and to other European nations which is beginning to hurt the economy greatly.

Rudolf Minsch, the chief economist of business lobby Economiesuisse explained to Bloomberg, “It’s like a world championship, placing at the top doesn’t mean you’ll win again next time. You have to train. It’s the same with the business environment. We have a spot on our record with the mass immigration initiative and the say on pay.”

Not only has the political state driven business away, but the citizens have been pushing for a more strict immigration law which limits the amount of business’s which can be started in the country. Not having these companies and business’s started in Switzerland has really hurt the unemployment rate of the country as whole. With it now nearing 5%, highest it has been in quite a while.

Another downfall which is causing potential business away is the tax increases. Switzerland was known in the past for its great tax rates which has began to take a hit, “Competitive advantages have shrunk and we aren’t best in class everywhere anymore. We are only competitive overall if have a very attractive tax system.”

Switzerland is hoping to get back to where they once were, but the current state is not trending in the right direction.

This post was originally published on Etienne Kiss-Borlase’s Political blog. For more info about Etienne, please visit his homepage.